For a complete description of this business group, please refer to the Corporate Sustainability Report 2002 or the Alcan Facts 2003 brochure.

Packaging plants: 90
Countries represented: 18

Pursuit of the Company's governing objective of Maximizing Value remains the top priority in all business groups.

Alcan Packaging's growth strategy includes investments in Pharmaceutical and Tobacco packaging applications, selective expansion in foil and film-based Flexible Packaging applications and the development of higher value-added applications in Personal Care/Cosmetics. The group is also looking at vertical integration to sustain an advantage in core conversion markets through innovation and differentiation. Success in these priorities will lead to strengthened relationships with stakeholders and increased economic, social and environmental benefits over the short and long term.

Maximizing Value: The Packaging group reinforced its global position in 2002 by focusing on low-cost, highly efficient manufacturing systems, superior customer service and innovative customer-based solutions.

Maximizing Value requires building upon knowledge and core strengths and assessing everything from product and process changes to technology impacts and new markets. A Best Practices Council was established in 2002 to improve revenue growth by reducing costs and improving productivity through the innovative use of proven resources. Best Practices also help to reduce lost time rates, decrease project cycle times, and increase communications efficiency, knowledge transfer and organizational learning. The group implemented a Best Practices sharing strategy, compiled a list of functional and technical experts and encouraged the application of best practices to achieve 2003 qualitative goals.

At the end of 2002, Alcan reached a definitive agreement to acquire FlexPac, the packaging arm of VAW. Regulatory approval is anticipated by mid-2003. With the addition of FlexPac's 14 high-quality plants, Alcan Packaging will have a worldclass presence in Europe, Asia and the Americas.

Environment, Health and Safety: As in all business groups, Environment, Health and Safety (EHS) is a constant business priority at Alcan Packaging, with improvement in all three areas being a continuous goal.

In 2002, Alcan Packaging further developed its EHS strategy and established EHS Baselines that describe the minimum, non-negotiable standards for each plant. With a goal for all facilities to be certified to OHSAS 18001, some 75% of the requirements are currently being met group-wide and approximately 25% of Packaging plants were either certified or in the process of certification at the end of 2002.

The group's CLEAN program, in place since 1998, contributes to a high operating standard at each facility and reflects the group's commitment to sustainability. Approximately 50% of all Packaging sites have achieved CLEAN status and on-site accidents have dropped dramatically. The goal for 2003 is to have 90% of facilities validated as CLEAN by the EHS audit team.

Alcan Packaging recognizes that EHS is an essential part of the decision-making process, whether it involves the planning and construction of a new installation, the development of a new product or a modification to existing machinery or processes.

See Practical Examples for details on select Packaging achievements in 2002.